Drop in approvals

HOME loan approvals fell in April, and while the drop was not as great as economists had forecast there are expectations the housing market has continued to soften in recent weeks.

The number of home loan approvals for owner occupiers dropped 1.4 per cent in April, seasonally adjusted data from the Australian Bureau of Statistics shows, compared with market expectations of a 1.8 per cent decline.

Westpac senior economist Matthew Hassan said more recent data, particularly from auctions, suggests the property market has weakened further since April, possibly as a result of banks applying tighter lending criteria.

“With more stringent assessments also likely to delay loan processing, finance approvals could see a more significant decline in the next few months,” Mr Hassan said.